The International Energy Agency (IEA) has applauded the reforms taking place in Nigeria’s upstream petroleum sector, following detailed explanations from the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) on how the Petroleum Industry Act (PIA) 2021 has changed governance, strengthened transparency, and boosted investor confidence. The commendation was made on Wednesday when a high-level IEA delegation visited the NUPRC headquarters in Abuja.
The delegation was led by Rita Maderia, the Africa Programme Manager at the International Energy Agency. She said the Agency was impressed with the progress Nigeria has made in improving the regulatory framework guiding oil and gas operations, especially at a time when global investors are demanding clearer rules and better environmental responsibility from energy-producing countries.
Receiving the delegation, the Commission Chief Executive (CCE) of NUPRC, Engr. Gbenga Komolafe, explained that the Petroleum Industry Act, signed into law by former President Muhammadu Buhari in 2021, has provided the most stable structure the industry has seen in decades. According to him, Nigeria’s upstream industry is now operating under a predictable, rule-based fiscal and regulatory system, which has encouraged renewed investor interest.
Komolafe stated that since the PIA came into force four years ago, the Commission has worked closely with local and international stakeholders to develop and gazette 17 regulatory instruments. These instruments cover key areas such as licensing rounds, host community development, asset management, environmental obligations, and fiscal compliance. He said these efforts have reduced ambiguity and limited the level of discretion previously associated with regulatory decisions.
He noted that the Commission has been intentional in removing barriers that discourage investment, adding that clarity and consistency remain core priorities. “The PIA provides a transparent, commercially-viable, and investor-friendly regulatory foundation. Our commitment is to sustain regulatory certainty, deepen stakeholder confidence, and align Nigeria’s upstream sector with global best practices,” he said.
Komolafe also emphasised that the reforms are already producing results. He said operators now have clearer guidelines for project development, while investors can better predict returns due to the stable fiscal environment introduced by the Act. According to him, several new investments, including marginal field projects and deep-water interests, have been revived because companies have renewed confidence in Nigeria’s regulatory direction.
In her remarks, IEA’s Rita Maderia praised the Commission for incorporating decarbonisation strategies into the approval process for upstream projects. She said integrating environmental responsibility into Field Development Plans reflects the global shift towards cleaner energy and low-carbon financing. According to her, the IEA has observed that energy-producing countries that adopt sustainability principles early often attract long-term funding from global institutions.
Maderia explained that global banks, development finance institutions, and international oil companies now require environmental compliance as a key part of investment decisions. She noted that NUPRC’s alignment with these expectations will help Nigeria compete better for energy capital at a time when investors are prioritising jurisdictions with strong governance and climate-friendly policies.
She also encouraged the Commission to continue building capacity for monitoring methane emissions, improving data transparency, and strengthening carbon-management frameworks. She said these steps would help Nigeria play a leading role in Africa’s energy transition while still maximising revenue from its hydrocarbon resources.
Industry observers say the visit by the IEA delegation signals increasing international recognition of Nigeria’s efforts to stabilise its oil industry. Analysts also believe that the PIA is gradually restoring confidence among investors who had previously stayed away due to regulatory uncertainty, frequent policy changes, and the long delay in passing oil sector reforms.
The upstream sector remains a major pillar of Nigeria’s economy, contributing the bulk of government foreign-exchange earnings. With new financing rules emerging globally, experts say Nigeria must continue to strengthen accountability and adopt cleaner production technologies to remain competitive.
The Commission said it will continue to work with global partners like the IEA to enhance transparency, reduce emissions, improve efficiency, and attract investment that supports long-term industry growth. According to Komolafe, the goal is to ensure Nigeria benefits from its vast oil and gas reserves in a sustainable and globally acceptable manner.
